BTC/USD Forex Signal: New All-Time High Above $35K

The price has continued to advance bullishly to new highs above the big round number at $35,000. 

Last Monday’s signals produced an excellent and very profitable long trade from the bullish bounce at the support level of $30,011 when it was reached late in the Asian session. The level held almost to the pip.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5pm Tokyo time Thursday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $34,512, $32,841, or $30,011.

  • Place the stop loss $100 below the local swing low.

  • Move the stop loss to break even once the trade is $100 in profit by price.

  • Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

Short Trade Idea

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $40,000.

  • Place the stop loss $100 above the local swing high.

  • Move the stop loss to break even once the trade is $100 in profit by price.

  • Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

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BTC/USD Analysis

I wrote last Monday that we had a strong bullish trend here which was rapidly becoming a speculative bubble.

I thought that the advance was likely to increase over the short term, so there were still long trades to be entered. However, it was increasingly probable that we would see a blow-off top – an exhaustion of the bulls – which would result in a dramatic climax to a new high followed by a fall of something like 15% or 20% of the value of Bitcoin, which could happen very quickly. I was happy to enter a new long trade if the $30k area held as support and produced a bullish bounce.

This was a very good call as Bitcoin did decline sharply that day, but the support level confluent with $30,000 held up and produced an excellent long trade entry just as I was seeking.

The price has continued to advance bullishly to new highs above the big round number at $35,000. Although volatility remains relatively very high, there are no clear signs of climax and exhaustion, so as we are trading into the blue sky of all-time highs, there is no reason not to take a bullish bias here and look to enter new long trades at pullbacks to the new key support levels nearby which I have identified above.

Bulls should beware of a climax if the price quickly reaches the major round number at $40,000.

BTC/USD chart

Concerning the USD, there will be a release of the latest FOMC meeting minutes at 7 PM London time.

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